AutoBeta(AutoBeta.net)12/10 Report--

On December 9, Beiqi New Energy, a subsidiary of Beiqi Blue Valley, released the production and sales express in November 2019. According to the report, BAIC New Energy achieved sales of 7005 vehicles in November, compared with 18732 vehicles in the same period last year, down 62.6% year-on-year; cumulative sales volume from January to November this year was 113988 vehicles, down 11.20% year-on-year from 123988 vehicles in the same period last year.

In addition to Beiqi New Energy, BYD sales, another company dedicated to the development of new energy vehicles, also declined. The data showed that BYD's new energy sales volume in November was 11220 vehicles, down 62.69% year-on-year. From January to November, the cumulative sales volume of new energy vehicles was 216407 vehicles, up 7.58% year-on-year.

It is worth mentioning that, whether BYD New Energy or BAIC New Energy, sales declined in October and November after a substantial increase in September. Under the circumstance that the state supports the development of new energy vehicles, the sales volume of new energy vehicles is still difficult to withstand the cold of the automobile market.

It is understood that the annual sales target of BAIC New Energy in 2019 is 220,000 vehicles, and the completion rate is only 51.8%. In 2019, BAIC New Energy launched five new vehicles in China, including EX3, EC5, EU5 R600, LITE and EU7. However, from now on, the sales volume of BAIC New Energy will continue to decline after the subsidy for new energy declines. If BAIC New Energy wants to achieve its annual sales target, it must sell 110,000 vehicles in the last month, but this is almost impossible.

Under the subsidy of new energy, BAIC New Energy wins the favor of consumers by virtue of high cost performance. Data show that in 2017, Beiqi New Energy received 2.771 billion yuan of state subsidy funds and 2.188 billion yuan of local subsidy funds, totaling 2.959 billion yuan.

In June this year, the state began to adjust the new energy subsidy policy, and new energy vehicles with a cruising range of less than 250km will not enjoy subsidies, which means that many new energy vehicle subsidies of BAIC New Energy will be affected.

Since the decline of new energy subsidies in June, the sales volume of new energy vehicles has declined for four consecutive months, and by 2020, the subsidies for new energy vehicles will be completely cancelled. At that time, the development pressure of new energy vehicles will be greater and greater. In addition, domestic and foreign automobile enterprises will accelerate the development of new energy, and the competitive pressure between automobile enterprises and brands will also be greater and greater.

In addition to external reasons, BAIC New Energy's own reasons are also important factors affecting sales. According to the data, in 2018, a total of 135,700 domestic new energy passenger vehicles were recalled, while BAIC New Energy itself recalled 69,000 vehicles, that is to say, one of the two recalled models was BAIC New Energy.

In addition, we can know from the inquiry on the automobile defect complaint website that there are many complaints about Beiqi new energy models, including inaccurate mileage, power battery failure, charging failure, airbag failure and other problems, which are all problems appearing on Beiqi new energy models and need to be taken seriously.

According to the plan of BAIC Group, by 2025, BAIC Group will stop selling fuel vehicles in an all-round way and transform them into pure electric or even hydrogen energy.

The sales performance of Beiqi New Energy is worthy of affirmation. According to the data, the sales volume of Beiqi New Energy in 2017 is 103199 vehicles, becoming the first pure electric vehicle enterprise to break through 100,000 vehicles. In 2018, the sales volume of Beiqi New Energy is 158,000 vehicles, ranking first in pure electric sales volume. However, the problems exposed by BAIC New Energy cannot be ignored, especially the product quality problems. For them, cost control, technology update and service quality are all urgent problems to be solved by BAIC, and these problems are often more important than sales volume.

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